The present invention generally relates to a method for measuring the environmental performance of particular facilities based on known performance or environmental indicators. More specifically, the method of measuring performance involves comparing the benchmark values of the individual environmental indicators to the actual indicator values of the environmental indicators produced by the facilities. The method allows performance evaluation and comparison of more than one facility, even when based on different indicators for each facility.
Measuring the environmental performance of a facility provides an effective way of evaluating the efficiency and profitability of the facility, the injury to the environment, the compliance with current regulations, and the standing of the facility in the market place. Typically, performance evaluation of a facility is based on multiple performance or environmental indicators that vary depending on its nature of production or service activities. Some environmental indicators include for example, amount of energy, materials, land and water use, amount of emissions released, compliance with regulations, or number of accidents. Since different indicators may apply to different facilities, evaluation of one facility is usually based on a group of performance indicators that are different from the group of indicators used to evaluate another facility.
Conventionally, in order to compare the performance of one facility against the performance of another facility based on different performance indicators for each facility, respectively, a conversion factor or weighing scheme is applied. For example, where I1 and I2 represent values of two different performance indicators for two facilities P1 and P2, respectively, performance is measured by expressing P1 and P2 in terms of I1 and I2. In mathematical terms, a conversion factor is applied such that I1=xcex1I2.
However, the science behind the selection of the value of such conversion factors or weights is highly debatable. Therefore, under the conventional approach, an imprecise or inaccurate evaluation and comparison of the performances of the different facilities based on different performance indicators may result.
Accordingly, an object of the present invention is to provide a method of evaluating the environmental performance of a facility based on a comparison of benchmark values of performance indicators, thereby providing a more precise evaluation of performance.
Another object of the present invention is to provide a method of evaluating the environmental performance of more that one facility based on different performance indicators of each facility, respectively.
Yet another object of the present invention is to provide a method of evaluating the environmental performance of more than one facility that allows comparison of the performances of each facility, even when the performance evaluations are based on different performance indicators of each facility.
The foregoing objects are basically attained by a method of measuring and reporting environmental performance of each of first and second facilities, respectively, based on a single environmental indicator of each facility, respectively, comprising the steps of selecting a first environmental indicator from the first facility, and a second environmental indicator from the second facility, identifying a first indicator value of the first environmental indicator, and identifying a second indicator value for the second environmental indicator. The method also includes the steps of determining a first benchmark value of the first environmental indicator and a second benchmark value for the second environmental indicator, determining a first performance value of the first facility by dividing the first benchmark value by the second indicator value, and determining a second performance value of the second facility by dividing the second benchmark value by the second indicator value. The method further includes the steps of reporting the first and second performance values, respectively, and comparing the first performance value to the second performance value.
The foregoing objects are also basically attained by a method of measuring and reporting environmental performance of first and second facilities based on multiple environmental indicators of the first and second facilities, respectively, comprising the steps of selecting a plurality of first environmental indicators from the first facility, each of the first environmental indicators, respectively, being different from each other, determining the total number, n1, of the first environmental indicators by summing the number of first environmental indicators, and identifying first indicator values I1i of each of the first environmental indicators, respectively. The method also includes identifying first benchmark values, B11, for each of the first environmental indicators, respectively, and determining a first performance value, D1i, of the first facility by the formula:       D1    i    =            [              n1                              ∑                          i              =              1                        n                    ⁢                                    [                                                I1                  i                                                  B1                  i                                            ]                        2                              ]              1      2      
and reporting the first performance value of the first facility.
The above method provides a effective way of both measuring performance of individual facilities based on different indicators, and comparing the performance of different facilities. This method of performance evaluation will provide direct financial benefits to the facility, direct organizational management benefits, and indirect financial benefits, such as improving market reputation.
Other objects, advantages and salient features of the invention will become apparent from the following detailed description, which, taken in conjunction with annexed drawings, discloses the preferred embodiments of the present invention.